Campaign under way to combat insurance fraud

Monday

Sep 24, 2007 at 12:01 AMSep 24, 2007 at 7:30 AM

Insurance fraud costs Americans at least $80 billion a year.

Rob Juteau

Insurance fraud costs Americans at least $80 billion a year.

If this illegal activity were a legitimate industry, its profits would exceed Toyota, IBM, Wal-Mart and Microsoft. If measured by sales, insurance fraud would crush Johnson & Johnson, Proctor & Gamble and Coca-Cola among many more of the Forbes Global 2000.

The New York Alliance Against Insurance Fraud, a cooperative effort by insurance companies in New York, has launched a public campaign to raise public awareness with respect to the forms of insurance fraud, the cost to consumers and the consequences of fraud.

“Insurance fraud takes many forms from those who collect workers’ compensation benefits even though they are able to work, to people who stage accidents to collect insurance money, to unscrupulous health care providers who bill twice for the same service,” Frank Henry, special investigations manager for One Beacon Insurance, said. “Many people who would never think of robbing a bank, stealing a car or burglarizing a home believe insurance fraud is a victimless crime. But, we are all victims of insurance fraud, as it costs everyone in higher premiums and higher prices on goods and services. Insurance fraud takes money out of the pockets of everyone.”

With approximately 25 percent of insurance premium dollars going toward the effects of fraud, the New York Alliance Against Insurance Fraud urges everyone who suspects insurance fraud is being committed to contact the alliance at 1-888-FRAUD-NY or 1-888-372-8369.

More information about the alliance and what to do to help combat insurance fraud is available online at www.fraudny.com.

“Most people want to do the right thing and report insurance fraud, but the problem is that they do not know who to call,” Sam Miller, an account executive with Barry Group, Inc., said. “This telephone number and website are easy to remember, and all information received will be kept confidential. All the alliance asks is that people provide them the details of the expected fraud, and they will investigate it from there.”

Henry said millions of people are victimized by insurance fraud without even knowing it.

“People’s health and lives are endangered by unscrupulous individuals who sell nonexistent health policies or perform quack medical care to illegally inflate health insurance claims,” he said. “Staged auto accidents and arson can cause innocent people to be killed or seriously injured. Workers’ compensation costs are encouraging businesses to relocate out of state. Insurance fraud is a crime, a crime punishable by law.”

Fighting fraud effectively requires a collective effort. This is happening in New York.

The New York Alliance Against Insurance Fraud recommends the following to protect against fraud:

If your auto mechanic charges for repairs you never received, or if this person tells you that he will inflate your bill to cover the cost of your deductible, he is involving you in fraud. When you have a doctor’s appointment, sign only one claim form per visit and make sure to date it. This makes it easier for your insurer to match your bills with services. When you get a notice of payment from your insurer , check it closely. If it is for a service you do not remember receiving, or something you are not clear about, contact your insurer. It could be a mistake or fraud.

To avoid becoming involved in a staged accident:

First and foremost, keep distance between your car and the car in front of you. Be wary if a car suddenly pulls in front of you, forcing you to follow dangerously close. After an accident, be careful of strangers who offer you quick cash or urge you to see a specific medical clinic, doctor or attorney. Carry a disposable camera so, in the event of an accident, you can take pictures of the scene, damage to cars and other details. Take detailed notes of the condition and number of passengers, and details of your discussion with the other driver. Remember to call the police.

To protect against identity theft:

Do not give out personal information on the phone, through the mail or over the Internet unless you have initiated the contact or are sure you know whom you are dealing with. Do not carry your Social Security card. Leave it in a secure place. Secure personal information in your home, especially if you have roommates, employ outside help or are having service work done in your home.

“Insurance fraud is a crime, and one way or another, honest consumers and businesses pay the price,” Miller said. “Insurance fraud occurs every day and in every state. People of all races, incomes and ages are victimized. Insurance fraud occurs when people deceive an insurance company or agent to collect money to which they aren’t entitled. Similarly, insurers and agents also can defraud consumers, or even each other.”

The more than 100 member New York Alliance Against Insurance Fraud is focused on raising public awareness of insurance fraud in all its varieties. It is assisted in its effort by the New York State Insurance Department Frauds Bureau, the New York State Insurance Department, the governor and the state legislature. The public awareness campaign focuses on the message that insurance fraud is a problem, one consumers are paying handsomely for but they can do something to stop it. The name of the campaign is “Fraud, the crime you pay for.”